Provide the net present worth for 6 years of the project


Consider two mutually exclusive projects that will be conducted for a total of 6 years. Project A lasts 3 years (so it will need to be repeated 1 time) and has the following cash flow:

Year 0 -$20,000;

Year 1 $17,000;

Year 2 $19,000;

Year 3 $11,000.

Project B lasts 2 years (so it will need to be repeated 2 times) and has the following cash flow:

Year 0 -$29,000;

Year 1 $18,000;

Year 2 $25,000.

Assume both projects can be repeated with the identical cash flows. The interest rate is 14.4%. Provide the net present worth for 6 YEARS of the project that you should select. If neither project should be selected, enter 0."

Solution Preview :

Prepared by a verified Expert
Finance Basics: Provide the net present worth for 6 years of the project
Reference No:- TGS02737642

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)